EbixCash World Money received India’s first perpetual AD-II licence from RBI, allowing it to process trade remittances up to Rs 25 lakh per transaction. This significantly expands the non-bank foreign exchange market, previously dominated by AD-I institutions and traditional banks. The move offers a new regulated channel for millions of MSMEs engaged in international trade.
How We Got Here
RBI changed its FEMA framework in May 2026, widening the scope for Authorised Dealer Category-II entities. This regulatory shift now permits non-bank forex players to facilitate trade and family maintenance remittances, activities previously reserved for banks and AD-I institutions.
The Numbers
- The perpetual licence permits eligible trade remittances up to Rs 25 lakh per transaction and family maintenance remittances.
- EbixCash World Money has operated in cross-border payments since 1999, building a network of over 100 branches across 70 Indian cities.
- The company also maintains a presence at more than 20 international airports and operates over 25,000 customer touchpoints nationwide.
- CEO TC Guruprasad cited nearly three decades of building trust and compliance with the regulator since 1999.
What Happens Next
🇮🇳 Why This Matters for India
For the millions of MSME exporters in Tirupur and Ludhiana, this creates a much-needed non-bank channel, potentially streamlining cross-border payments and reducing transaction friction.
The Take
The real win here is for RBI, showcasing a controlled deregulation that broadens financial access without opening the floodgates to every player. Expect larger fintechs to apply for similar AD-II upgrades, forcing traditional banks to innovate faster on MSME trade finance within the next 18 months.
Source:
YourStory ↗